APRIL 3, 2007

The “NATaT Washington Report” is a monthly email newsletter that provides timely information to town and township officials on the legislative, regulatory, funding, and policy decisions in Washington that could affect your communities. The Washington Report focuses on NATaT’s primary federal issues. The Washington Report is produced by NATaT’s federal representative in Washington, The Ferguson Group. For more information on the legislation described in this report, see http://thomas.loc.gov/ or contact The Ferguson Group. Contact NATaT federal director Jennifer Imo at 1.866.830.0008 or jennifer.imo@natat.org for more information.

THE MARCH 2007 WASHINGTON REPORT CONTAINS SUMMARIES OF THE FOLLOWING ISSUES:

• BILLBOARD LEGISLATION
• CENSUS
• ENERGY
• ENVIRONMENT AND NATURAL RESOURCES
• FARM BILL
• FIRST RESPONDERS
• HOMELAND SECURITY
• NATIVE AMERICAN LEGISLATION IN THE 110TH CONGRESS
• VIDEO FRANCHISING
• WATER AND WASTEWATER

BILLBOARD LEGISLATION
NATaT recently lent its support to a campaign led by Scenic America and backed by the National League of Cities, U.S. Conference of Mayors, and American Planning Association, among others, to block legislation that would have weakened the “non-conforming” billboard regulations of the 1965 Highway Beautification Act. Senator Harry Reid (D-NV) offered an amendment to the Iraq war funding bill that would have enabled the outdoor advertising industry to rebuild nonconforming signs damaged by natural disasters. These signs violate current zoning ordinances, and like all nonconforming land uses, are subject to permanent removal when destroyed by acts of God. Passage of the amendment would have impaired the ability of towns and townships to remove nonconforming billboards and undermined their ability to regulate nonconforming land uses in general by carving out an exception to long-standing legal practices not available to any other business entity.

The billboard campaign generated significant press coverage, including multiple articles in The Washington Post and the USA Today. The amendment was ultimately withdrawn when Senator Lamar Alexander (R-TN) challenged it as non-germane to Iraq war funding (and thanked NATaT and the other organizations for their leadership on the issue). While our efforts proved successful, this is the third attempt to weaken the Highway Beautification Act within the past year. NATaT will continue to participate in efforts to protect the prerogatives of local governments.

CENSUS
On February 14th, the Senate approved a long-term Continuing Appropriations Resolution approving funding for non-defense federal programs through the end of FY 2007 (September 30, 2007). The resolution secured the President’s request of $694.1 million for the 2010 census, Economic Census, and other activities in the Periodic Censuses and Programs account. This will allow the Census Bureau to move forward with the 2008 Dress Rehearsal, as well as full implementation of the American Community Survey (ACS).
Towns and townships are directly affected by the amount of funding allocated to 2010 Census preparations. During the upcoming appropriations process, if the budget requested by the President on behalf of the Census Bureau is not allocated, the 2010 Census count can be adversely affected and could result in an inaccurate count. This would directly impact redistricting and how funding is allocated to each state, city, town, or township.

The American Community Survey (ACS) is also important for towns and townships because it is the first attempt to collect the most accurate information on an annual basis, instead of waiting ten years for a census count. After the 2000 census, the Census Bureau replaced the long form questionnaire used during the decennial census, with the ACS. The ACS asks similar questions to the long form, but is designed to provide more up-to-date data. ACS forms are sent out to a sample of households every month of every year and the Census Bureau provides ACS data on an annual basis. The ACS was first fully implemented in 2005.

ENERGY
Energy Efficiency Legislation
The Senate was the focus of the energy debate in Congress during the month of March. Senator Jeff Bingaman (D-NM), Chair of the Senate Energy and Natural Resources Committee, announced his plan to introduce several bills dealing with energy efficiency, oil and gas royalty payments and a bill to require 15 percent of energy be produced from renewable sources by 2020. Senator Bingaman, along with Senator Domenici, Ranking Member of the Energy and Natural Resources Committee, introduced legislation S. 987, which would require the production of 36 billion gallons of biofuels by 2022. The House of Representatives reiterated its goal of having energy legislation on floor by the summer, though details of any House legislation have yet to be revealed. The House Energy and Water Appropriations Subcommittee held hearings on the Department of Energy’s FY 2008 funding request for its renewable energy and conservation programs.
NATaT supports federal investments in energy efficiency and renewable energy sources that can benefit the economic and environmental health of small communities. NATaT’s federal platform includes calls for federal incentives for biofuels development, in a manner that benefits the local economies of rural communities.

Climate Change
Former Vice President Al Gore’s appearances in front of both House and Senate committees have gathered focus and strength to address climate change. In addition, several bills have been introduced that deal with emissions and energy use. On March 8, Senator Olympia Snowe (R-ME) introduced S. 822, the EXTEND the Energy Efficiency Act of 2007. The bill extends relief to consumers and businesses affected by high energy prices.

On March 13th, Representative Edward Markey (D-MA) introduced H.R. 1506 which aims to reduce emissions and gasoline consumption by motor vehicles. Additionally, On March 20th, Representative Henry Waxman (D-CA) introduced H.R. 1590 which ultimately calls for an 80 percent reduction in greenhouse gas emissions by 2050.

On March 22nd, Senate Energy and Natural Resources Committee Chairman Senator Bingaman, along with Ranking Member Pete Domenici (R-NM) introduced S. 962. The bill would amend the Energy Policy Act of 2005 to reauthorize and improve the carbon capture and storage research, development and demonstration program of the Department of Energy.

Chairman John Dingell (D-MI) of the House Energy and Commerce Committee has sent a letter to the energy industry and environmental community soliciting recommendations as to which issues should be addressed in climate change legislation currently being developed by his Committee.
Towns and townships are directly affected by federal energy programs and policies. Local communities seeking to boost the use of renewable sources of energy for transportation and buildings can be supported with federal funding, including for biomass fuels and renewable electricity generation. NATaT will be seeking to ensure that towns and townships can benefit from energy policies and programs that promote clean energy in small and rural communities.

ENVIRONMENT AND NATURAL RESOURCES
Water Resources Development Act (WRDA)
On March 28th, the Senate Environment and Public Works Committee approved its WRDA bill, which was virtually identical to the WRDA bill that cleared the Senate last year. The bill authorized about $13 billion for more than 200 projects and is expected to receive floor time soon. The House Transportation and Infrastructure Committee approved its version of WRDA in early March. Chairman Jim Oberstar (D-MN) expects the bill to reach the House floor for a vote after Congress returns from its spring recess. Once the bills are approved by both the House and Senate, conferees will have to negotiate on projects and Corps reform language.
Many towns and townships are directly involved or affected by water resource projects on their local rivers, lakes, coasts, canals, reservoirs, and wetlands. NATaT supports the passage of WRDA legislation that is badly needed to support local water resource improvements and projects. WRDA legislation should include increased funding for local projects, improvements to the Corps planning process to reduce delays in Corps projects, fair cost-share methodologies for local project sponsors, and broadened Corps authorities to support local waterfront revitalization.

FARM BILL
Both the House and Senate passed their budget resolutions in late March governing federal spending and taxes for 2008 and the four succeeding fiscal years. The House budget proposal looks very similar to the Senate's with respect to funding for the farm bill. Neither resolution will provide direct authority for new farm bill spending beyond the current programs baseline amount. The House, like the Senate however, did authorize the establishment of a "reserve fund" that the Agriculture Committee could tap as needed to craft the farm bill. The House reserve is set at $20 billion and the Senate reserve is set at $15 billion. However, it is important to note that spending from the reserve is still subject to the congressional "PAYGO" rules. (PAYGO compels new spending or tax changes to not add to the federal deficit. New proposals must either be “budget neutral” or offset with savings derived from existing funds.)

The House and Senate Budget Committees will now meet in conference to resolve the differences between their resolutions.

It appears that the farm bill schedule will occur as follows: Committee mark-up in June; floor debate and conference consideration in July; staff work drafting the conference report in August, and final passage in September.

The September deadline is important because farmers need to know what the price and income support rules are going to be well in advance of spring 2008 planting. Further, many other farm bill programs not tied to planting expire or need renewal by September 30th. So, there is plenty of motivation for the chairmen of the two committees to meet their planned schedule.

NATaT presented a Farm Bill Position Paper to nearly 30 Members of Congress and Senators when the Board of Directors met in Washington, D.C. in February, 2007. NATaT focused on its support of USDA programs and 2007 Farm Bill provisions targeted toward improving the social and economic condition of rural communities:

· EDUCATION – USDA Essential Community Facilities and USDA Extension programs, for example, could be more specifically tailored toward achieving rural community and regional economic development and stability objectives.

· ENERGY –With the growing emphasis on utilization of cellullosic biomass and agricultural processing waste products for ethanol and electric power production, NATaT supports focused consideration of, and federal program support for, rural and economic “bridge” communities as sites for energy facilities.

· NUTRITION – Community-based food projects are an important “on-the-ground” access point for better nutrition and can link local agriculture to the larger community. Nutritional and “farm-to-table” education in schools and better access to USDA food bank resources by local governments are equally important.

· WATER AND WASTEWATER INFRASTRUCTURE – Agriculture and non-agriculture related economic development require significant installation or updating of community water and wastewater capabilities. USDA Rural Development and Rural Utilities program access may need to be updated to reflect demographic and socio-economic changes in what is “rural”.

FIRST RESPONDERS
Volunteer Responder Incentive Protection Act of 2007 (VRIP ACT, H.R. 943)

The Volunteer Responder Incentive Protection Act of 2007 was introduced on February 8th by Representative John Larson (D-CT). The bill would amend the Internal Revenue Code of 1986: (1) to exclude from gross income real or personal property tax rebates or any other benefits provided to volunteer firefighters and emergency medical responders; and (2) to exempt from social security, unemployment taxes, and wage withholding real or personal property tax rebates or any other benefits provided to volunteer firefighters and emergency medical responders. “Any other benefits” is defined as a benefit, other than a property tax rebate, that a state or local government provides an individual for serving as a member of a qualified volunteer emergency response organization, such as a small stipend. Volunteer firefighters and emergency medical responders must members of a volunteer emergency response organization that is organized and operated to provide firefighting and emergency medical services, as required and recognized by the state or local government.

Examples of some of the recruiting and retention incentives, aside from property tax abatements, that communities are currently experimenting with include modest stipends that are sometimes paid per call or in lump-sums per year or quarter, health benefits, retirement awards, state income tax credits, length of service awards, and death benefits. The bill language provides flexibility to allow states and local governments to adopt the appropriate incentive programs and structure them through their own legislatures. Various tax incentives are currently offered to volunteer emergency responders in five states: Connecticut, Maryland, South Carolina, New York, and Delaware.

The legislation has 108 cosponsors and is currently pending before the House Committee on Ways and Means. The Senate counterpart from the 109th Congress (S. 1906) has not been reintroduced in the 110th Congress.
Volunteer firefighters and EMS personnel are integral to public safety in towns and townships. NATaT strongly supports this proposed law that would provide appropriate incentives and protections for the men and women who volunteer to serve their local communities through volunteer fire and EMS companies.

HOMELAND SECURITY
The Senate passed FY 2007 Emergency Supplemental Appropriations bill includes more than $2 billion for domestic homeland security programs. Specifically, the bill included $625 million for rail and mass transit security grants, compared to $225 million provided by the House bill. The Senate bill also contains $190 million for port security grants and an additional $35 million for a new regional grant program for high risk urban areas to help them prepare for catastrophic event planning and preparedness. The bill also included language giving state and local governments the authority to enact stronger regulations than the federal government to safeguard chemical facilities.

Department of Homeland Security (DHS) Reauthorization bill
On March 28th, the House Homeland Security Committee approved H.R. 1684, the Department of Homeland Security (DHS) Reauthorization bill. The bill would authorize programs and spending at DHS totaling $40 billion in discretionary funds, which is $2 billion more than the White House requested in its FY 2008 budget.

The Committee approved a series of amendments, mostly dealing with border security and enforcement of immigration laws. An amendment from Representative David Davis (R-TN) would have allowed DHS to reimburse state and local law enforcement agencies for the costs associated with training police officers to enforce immigration laws, but it was defeated by a 15-15 vote. The bill is expected to be sent to the House floor for a vote by mid-April.

Grants for Local Law Enforcement
In early March, the Senate Judiciary Committee approved S. 368, the COPS Improvements Act of 2007. The bill would expand the Community Oriented Policing Services (COPS) program and authorize the Department of Justice to issue grants to projects that encourage cooperation between schools and law enforcement officers. Sponsored by Senator Joseph Biden (D-DE), the bill also would authorize funding for a recruiting program for military veterans to pursue law enforcement as a profession. The bill authorizes $600 million to hire officers for community policing and intelligence gathering and to act as school resource officers, $350 million per year for technology grants, and $200 million per year to help local district attorneys hire community prosecutors.

The Senate Judiciary Committee also marked up S. 231, authorizing over $1 billion annually, through FY 2012, for the Edward Byrne Memorial Justice Assistance Grant Program which awards grants for criminal justice enforcement, focusing on violent crime and serious offenders. S. 231 is sponsored by Senator Diane Feinstein (D-CA).

There is no timetable on when the Senate may vote on these bills, and currently there is no companion legislation in the House.

Firefighters Grant Program
On March 29th, the Department of Homeland Security (DHS) released its guidelines for the 2007 Assistance to Firefighters Grant (AFG) program.

As in prior years, AFG grants will be awarded on a competitive basis to the applicants that best reflect the program's criteria and funding priorities. The AFG program for 2007 generally mirrors previous years' programs with a few significant changes. The first significant change is the removal of the restriction regarding the number of vehicles that an applicant may request in a single application.

The second change is to allow applicants to submit as many as three separate applications such as a vehicle application, an application for operations and safety; and an application for a “regional project.” A “regional project,” generally, is one that is undertaken by an applicant to provide services and support to a number of other regional participants, such as training for multiple mutual-aid jurisdictions.

For FY 2007, Congress appropriated $547,000,000 for the AFG Program. As in years past, grantees must share the costs of the projects funded under this grant program. Fire departments and EMS organizations that serve populations of less than 20,000 must match the federal grant funds with an amount of non-federal funds equal to five percent of the total project cost. Fire departments and EMS organizations serving areas with a population between 20,000 and 50,000 must match the federal grant funds with an amount of non-federal funds equal to ten percent of the total project cost. Those organizations that serve populations of over 50,000 must match the federal grant funds with an amount of non-federal funds equal to twenty percent of the total project costs.

Interested applicants can access the FY 2007 AFG application through the AFG website (www.firegrantsupport.com), the U.S. Fire Administration's (USFA) website (www.usfa.fema.gov), and the Grants.gov website (www.grants.gov). The website contains important information on the AFG, including the FY 2007 funding priorities and program guidance, a web-based tutorial on the application process, a listing of frequently asked questions, and other materials. Applications are due no later than May 4, 2007.

Immigration
On March 22nd, Representative Luis Gutierrez (D-IL) and Representative Jeff Flake (R-AZ) introduced the Security Through Regularized Immigration and a Vibrant Economy (STRIVE) Act of 2007. The bill proposes to tighten border security and interior enforcement and would establish an employment verification system, a new worker visa program for future flow of immigrant workers, and contains an earned legalization program for the undocumented living in the US.

The STRIVE Act also authorizes DHS to provide law enforcement relief in the form of grants to law enforcement agencies that provide border-related assistance. The bill provides reimbursement to state and local governments for pre-conviction costs for undocumented persons charged with or convicted of crimes.

In addition, the bill reaffirms that state law enforcement agents can enforce criminal provisions of the federal immigration laws, but only during the normal course of carrying out law enforcement duties.

The STRIVE Act has been referred to the House Judiciary and Homeland Security Committees. The bi-partisan bill has 31 co-sponsors. House Speaker Nancy Pelosi (D-CA), who strongly supports the bill and comprehensive immigration reform, stated that the STRIVE Act “provides an excellent framework for Congress and the President to begin work on the vital task of immigration reform.”

TFG will continue to monitor immigration legislation, particularly as it relates to the impact on local governments.
Many towns and townships have risks to local homeland security, and have needs for federal funding to protect against those risks. However, the homeland security funding provided by the federal government is heavily focused on urban areas, high security risk areas, and state-based security plans. Towns and townships with genuine homeland security needs must demonstrate those needs and work in partnership with their larger regions and states to be included in state-based homeland security spending plans. Critical programs for towns and townships include FIRE grants and interoperability communications grants. These programs can fund small community projects but, again, towns/townships need to coordinate with regional and state authorities to demonstrate genuine need. NATaT supports approaches that provide additional grant funding to all communities, including small towns, for these needs.

NATIVE AMERICAN LEGISLATION IN THE 110TH CONGRESS
H.R. 1: Implementing the 9/11 Commission Recommendations Act of 2007 generally implements the 9/11 commission recommendations; and specifically provides funding to eligible Tribes for first responder equipment, training and overtime/additional personnel costs associated with heightened threat levels. Tribes, like local governments, must work through/with the State to receive funding. The bill was passed by the House on January 9th as part of Democrats’ “first 100 hours,” and on March 13th the bill passed in the Senate.

H.R. 54: Teacher Recruitment Act of 2007 is a measure that would expand the eligibility of individuals to qualify for loan forgiveness for teachers in order to provide additional incentives for teachers currently employed or seeking employment in economically depressed rural areas, Territories, and Indian Reservations. The bill was referred to the House Education and Labor Committee.

H.R. 155/S. 160: Lower Brule and Crow Creek Sioux Compensation would provide compensation to the Lower Brule and Crow Creek Sioux Tribes of South Dakota for damage to tribal land caused by Pick-Sloan projects along the Missouri River. The bill was referred to the House Natural Resources Committee.

H.R. 318: Elementary and Secondary Education Act Impact Aid would amend the Elementary and Secondary Education Act of 1965 to revise impact aid program requirements for distribution of school construction payments, and of school facility emergency and modernization grants, to local educational agencies impacted by military dependent children or by children residing on Indian lands.

H.R. 545 / S.85 / S.267: Native American Methamphetamine Enforcement and Treatment Act. These bills would amend the Omnibus Crime Control and Safe Streets Act of 1968 to include territories and Indian tribes as eligible grant recipients under the programs to: (1) address the manufacture, sale, and use of methamphetamine; (2) aid children in homes in which methamphetamine or other drugs are unlawfully manufactured, distributed, dispensed, or used; and (3) address methamphetamine use by pregnant and parenting women offenders. On March 22nd, the House passed H.R. 545. The Senate bills were referred to the Senate Judiciary Committee.

Many towns and townships are affected by tribal activities taking place within their jurisdictions. NATaT members support initiatives that will help tribal communities become sustainable, healthy places. At the same time, towns and townships seek federal and state requirements that casino operations, which can have major impacts on local quality of life, are conducted in a manner that mitigates negative impacts and provides a fair share of resources for local services.

VIDEO FRANCHISING
On March 5th, the Federal Communications Commission (FCC) released the Video Franchising Order (MB Docket No. 05-311) that was approved on December 20, 2006. The order, printed in the Federal Register on March 21st, is intended to facilitate and expedite entry of telecommunications companies into the market for the delivery of multi-channel video programming and expanded broadband deployment. Local Franchise Authorities (LFAs) contend that the FCC’s order limits a local government authority over new applicants. The Order:

· Imposes a 90 or 180 day “shot clock” for negotiations. (FCC grants an “interim” franchise should the LFA fail to act.);
· Bans “unreasonable” build-out requirements;
· Reduces franchise fees by mandating credits for fees and in-kind payments that are common;
· Jeopardizes financial support for PEG/I-NETs; and
· Preempts local level playing field rules.

Unless the FCC or a court delays the effectiveness of the rules and policies adopted in the Order, the Order will become effective on April 21. All appeals must be filed by April 4 in order to be eligible for the lottery and all appeals must be filed 50 days thereafter.

Comments on Further Notice of Proposed Rulemaking (FNPRM) are due April 21 and Replies 15 days thereafter. You may submit comments, identified by MB Docket No. 05–311, by any of the following methods:

· Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments.
· Federal Communications Commission’s Web Site: http://www.fcc.gov/cgb/ecfs/. Follow the instructions for submitting comments.

The Ferguson Group, on behalf of NATaT, participated in a conference call on March 30th hosted by the US Conference of Mayors (USCM) to discuss the impact of the FCC Order and related strategy and legal options. USCM, as part of a local government coalition, intends to file an appeal in lottery circuit and participate in FNPRM. If the USCM is unsuccessful as a lottery player, national organizations will fully support lead local government litigant. A final ruling on litigation concerning the Video Franchise Order likely would occur spring 2008. TFG will continue to work with other local government advocates to explore alternatives for protecting local franchise authority.

Local government organizations and associations are united in their opposition to the FCC’s decision. Local governments rely on the revenue from their long-standing local franchise authority. Small towns and townships have the additional concern that there is no requirement that telecommunications infrastructure be built out to rural, small, and under-served communities.

WATER AND WASTEWATER
H.R. 569

On January 18th, Representative Bill Pascrell (D-NJ) introduced H.R. 569, the Water Quality Investment Act of 2007. The bill authorizes $1.7 billion over five years for grants to replace aging sewer systems. The legislation aims to help local governments fund the repair and replacement of “combined sewer overflows” - outmoded sewer systems designed to carry both domestic sewage and industrial wastewater. The bill’s supporters say such sewer systems, which still exist in more than 700 communities nationwide, pose a risk to public health and the environment.

The bill has 19 cosponsors and was passed by the House of Representatives on March 7th. On March 8th the bill was received in the Senate and sent to the Senate Environment and Public Works Committee. There is no Senate companion bill.

H.R. 700

On January 30th, Representatives Jerry McNerney (CA-11) and Ellen Tauscher (CA-10) introduced H.R. 700, The Healthy Communities Water Supply Act of 2007. The bill would authorize $125 million in funding for local government, water agency and non-governmental organization projects that increase usable water supply by encouraging innovation in water reclamation, reuse and conservation.

The bill’s ultimate goal is to provide funding to develop alternative sources of clean drinking water, as well as water for agricultural and industrial purposes.

Specifically, The Healthy Communities Water Supply Act of 2007 amends the Federal Water Pollution Control Act (popularly known as the Clean Water Act) to increase the amount of authorized appropriations for the pilot program for alternative water source projects. The legislation will provide a necessary source of funding for ideas like aquifer storage and retrieval and membrane filtering technologies that have the potential to greatly increase our ability to use water more effectively and efficiently.

The bill was passed by the House of Representatives on March 8th. On March 9th, H.R. 7000 was received in the Senate and referred to the Senate Environment and Public Works Committee. There is no Senate companion bill.

H.R. 720

On January 30th, Representative James Oberstar (D-MN) introduced H.R. 720, the Water Quality Financing Act of 2007. The bill would amend the Federal Water Pollution Control Act to authorize the Administrator of the Environmental Protection Agency (EPA) to make grants to nonprofit organizations to provide both technical assistance to rural and small municipalities for wastewater infrastructure financing and technical assistance and training for rural and small publicly owned treatment works.

In addition, H.R. 720 reauthorizes the Clean Water State Revolving Fund, which would provide $20 billion over five years for loans to water and sewer projects. The bill also offers states increased flexibility in the financing packages they can offer to cities and local communities. This legislation authorizes appropriations through FY 2012 for state pollution control programs and watershed pilot projects.

Furthermore, it revises both eligibility requirements for grants for sewage collection systems and state water pollution control revolving fund provisions. It requires states to: establish a list of revolving fund projects that prioritizes water quality improvement projects; and provide financial assistance to only projects on such lists.

The bill currently has 32 cosponsors and was passed by the House of Representatives on March 9th. On March 12th, H.R. 720 was received in the Senate and referred to the Senate Environment and Public Works Committee. There is no Senate companion bill.

NATaT communities must have the ability and resources to finance, construct, and maintain drinking water and wastewater systems. NATaT supports legislation that will provide additional federal funding support for these critical infrastructure projects.